You are evaluating Larch Leaf Tools stock, which is currentl…
You are evaluating Larch Leaf Tools stock, which is currently trading at $30 per share. You can either:invest $3,000 directly in the stock, orinvest $3,000 in call options on the stock. Each call option has a strike price of $30, a premium of $3 per share, and 45 days to expiration. Each option contract covers 100 shares.If the stock price in 45 days is $38, what are your dollar profit and percentage return for:the stock investment, andthe call option investment?